Bitten off more than you can chew? There’s nothing cheap about opening a restaurant.
The average restaurant start-up will rack up around $250,000. If you’re opening an eatery, you may want to reduce your initial expenses while you get the operation started. One powerful way to do that is by leasing the equipment you use.
Let’s take a look below at some of the key benefits of renting restaurant equipment.
The initial outlay for buying restaurant equipment can cripple an eatery venture out the gate. By reducing that outlay, you give your business a chance to get going before the big costs hit.
That means you can secure cash-flow to finance new purchases — a luxury you don’t often have in the initial phases. Even if you only rent equipment for the first year or so of your business, it could make your operation feasible.
Given that so many small businesses fail soon after opening, steadying your finances in the first year could keep you going long enough to succeed.
Nothing’s certain in the restaurant game. You could hit hard times that force you to reduce the scale of your operation. Or, when business is booming, you might need to scale up.
When leasing restaurant equipment, you can scale your business up or down with almost no warning. That allows you to respond to new business needs and even seasonal shifts, maximizing your chance for profit.
Broken restaurant equipment can make for an expensive repair. For a small operation, this disruption in cash-flow could be enough to shut you down until you can afford the repair. The effect is even worse when it’s vital equipment that your restaurant can’t operate without.
When you’re renting equipment, you have the peace of mind that repairs will be free and your equipment isn’t likely to be out of service for long. In cases where the equipment can’t be repaired, your lease company will offer you a replacement.
Taxes are an inevitable and messy thing you’ll have to deal with on your way to business success.
But renting equipment can help you there, as well. By renting equipment, you can spread the tax impact of purchases and make your cash flow more predictable.
You can learn more about the benefits of leasing equipment here.
Access To Newer Equipment
If your restaurant has been around a while, aging equipment can start to become a problem. Repairing old equipment can be a financial burden, but removing and replacing it with newer equipment may be prohibitive.
If you’re renting equipment, then age is no problem. If an appliance outlives its usefulness, you can return it to the lease company. After that, you can rent out a new piece of equipment easily.
Renting Restaurant Equipment Could Be The Answer
Renting restaurant equipment could be the answer to how you boost your business without breaking the bank. Keep these points in mind and you can decide whether renting equipment is right for your business.
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